Brighthouse Financial (BHF) Cut to Hold at Zacks Investment Research
According to Zacks, “Brighthouse Financial’s shares have outperformed its industry year to date. It is poised to benefit from growth opportunities offered by the largest individual insurance market in the world, given its expansive and compelling suite of life and annuity products and a strong market presence. Focus on exiting TSAs should lower costs. It is revamping the life insurance business to ramp up annuity sales. However, its first-quarter 2019 adjusted net income of $1.98 per share missed the Zacks Consensus Estimate by 6.6% and also dropped 16.1% year over year. The quarter incurred establishment costs related to planned technology and branding expenses associated with the company's separation from its parent company. Nonetheless, it delivered robust annuity sales, prudent capital and expense management. However, increasing expenses could weigh on margin expansion. Higher leverage coupled with lower interest coverage raises concern.”
Other research analysts have also issued reports about the company. TheStreet upgraded Brighthouse Financial from a d+ rating to a c- rating in a research report on Thursday, April 25th. Wells Fargo & Co reiterated a hold rating on shares of Brighthouse Financial in a research report on Thursday, February 28th. Deutsche Bank lowered Brighthouse Financial from a buy rating to a hold rating in a research report on Thursday, February 28th. BidaskClub upgraded Brighthouse Financial from a sell rating to a hold rating in a research report on Tuesday, March 19th. Finally, Sandler O’Neill lowered Brighthouse Financial from a buy rating to a hold rating and lowered their price objective for the stock from $43.00 to $42.00 in a research report on Thursday, March 7th. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and one has given a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average price target of $47.27.
Brighthouse Financial (NASDAQ:BHF) last posted its quarterly earnings results on Monday, May 6th. The company reported $1.98 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.12 by ($0.14). The company had revenue of $2.01 billion during the quarter, compared to analysts’ expectations of $1.98 billion. Brighthouse Financial had a net margin of 2.49% and a return on equity of 6.01%. Brighthouse Financial’s revenue for the quarter was down 6.9% on a year-over-year basis. During the same quarter last year, the company earned $2.36 earnings per share. Equities research analysts predict that Brighthouse Financial will post 8.96 EPS for the current fiscal year.
In related news, Director C Edward Chaplin acquired 2,700 shares of Brighthouse Financial stock in a transaction dated Monday, May 13th. The shares were acquired at an average cost of $36.50 per share, for a total transaction of $98,550.00. Following the completion of the purchase, the director now owns 6,939 shares in the company, valued at $253,273.50. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.01% of the stock is currently owned by company insiders.
A number of institutional investors have recently bought and sold shares of BHF. Pearl River Capital LLC acquired a new stake in Brighthouse Financial in the fourth quarter valued at $26,000. Bessemer Group Inc. grew its holdings in shares of Brighthouse Financial by 68.3% during the fourth quarter. Bessemer Group Inc. now owns 865 shares of the company’s stock worth $27,000 after purchasing an additional 351 shares during the last quarter. Signaturefd LLC grew its holdings in shares of Brighthouse Financial by 387.3% during the first quarter. Signaturefd LLC now owns 731 shares of the company’s stock worth $27,000 after purchasing an additional 581 shares during the last quarter. Benjamin F. Edwards & Company Inc. grew its holdings in shares of Brighthouse Financial by 162.8% during the fourth quarter. Benjamin F. Edwards & Company Inc. now owns 954 shares of the company’s stock worth $29,000 after purchasing an additional 591 shares during the last quarter. Finally, B.S. Pension Fund Trustee Ltd acting for the British Steel Pension Fund purchased a new position in shares of Brighthouse Financial during the fourth quarter worth about $32,000. Institutional investors own 94.52% of the company’s stock.
About Brighthouse Financial
Brighthouse Financial, Inc provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment offers variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security.
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